Unlocking Africa's critical minerals to boost SSA GDP by 12%

Africa's abundant critical minerals hold enormous potential for the continent's economic growth and development. With several countries, including South Korea, Russia, USA, the UK, and Saudi Arabia, vying to tap into these resources, it is essential for Africa to select strategic partners that prioritize value addition and sustainable development. Veronica Bolton Smith, an Africa Advisor for the Critical Minerals International Alliance, emphasized the significance of robust regulatory reforms, tax collection, and long-term relationship strategies to ensure the continent benefits fully from these partnerships. As the demand for critical minerals such as copper, nickel, cobalt, and lithium increases globally for applications in electric vehicles, renewable energy, and technology, Africa stands to boost its GDP by 12% or more by 2050 if it harnesses these resources effectively. However, to realize this potential, African nations must prioritize skills development, value addition through local processing and manufacturing, and address infrastructure challenges, particularly in power supply, water access, and logistics. Collaborative efforts between governments, the private sector, industry bodies like the Critical Minerals International Alliance, and regional institutions like the African Continental Free Trade Secretariat will be crucial in aligning strategies and fostering sustainable growth in the critical minerals sector. The dialogue surrounding the development of critical minerals supply chains, spearheaded by the African Union, presents an opportunity for Africa to shape its future and secure beneficial partnerships that drive economic prosperity for its people.